The Blues were thought to be one of three Premier League clubs who had contacted the European champions to express an interest in the Spain international following his return to the Bernabeu from Juventus.

Real were believed to have re-signed Morata with a view to selling him on for a profit and Chelsea were ready to pay up to 75million euros for his services to add to their attacking options.

However, Real have now decided they want to keep the 23-year-old following his impressive performances for Spain at Euro 2016, with Morata netting three times for La Roja in France.

Reports in Spain say Los Blancos informed Morata’s agent of their decision at a meeting on Monday, meaning Chelsea will have to look elsewhere to improve their frontline.

The news of Morata being withdrawn from the transfer market comes after another supposed target for manager Antonio Conte was snapped up, with Graziano Pelle joining Chinese club Shandong Luneng from Southampton.